ch13 to 7conversion

[feemama]

Can someone tell me how this conversion would work. I just started my 13 cause I am not eligible for a 7 until Oct 09, and I was getting anxious about not paying creditors. My original consultation with the attorney stated minimal payment and 0 to unsecured because we are well below median, I filed alone without my husband. Then I received notice from an audit for the Department of Revenue and they want $7200 which was suppose to be included in the plan, so the payment went up from minimal for 36 months to $205 for 55 months, then the Department of revenue sent back their claim for 0 because its in appeal, so now my payment went to $205 for 36 month not paying taxes since they claimed 0, and now the attorney says the unsecured will get the excess of my payments. Why don't they adjust my payment back to minimal? none of this makes sense, unsecured was suppose to get 0 now they are getting something. Can I just convert to 7 in the fall and be done with it and deal with taxes on my own.....I would love all of your advise if this babble makes any sense.... Thanks

[lrprn]

Why don't they adjust my payment back to minimal?

Because your plan was filed with the taxes owed as a part of the plan. To get them out of the plan, your lawyer would have to file an amended plan. However, given that you are successfully making the plan payments now, that's could raise a big red flag to your trustee. What difference does it make in the long run if your unsecureds that filed claims get paid a few dollars for a few months before you convert?

Can I just convert to 7 in the fall and be done with it and deal with taxes on my own.....

If you qualify to convert to Ch 7 in the fall, then yes, you can convert to the 7 then and pay the taxes yourself once they are out of appeal.

[CH33 Paralegal]

You can't convert, because it's still the same case number, but you can let the case get dismissed and then REFILE a 7.

If you have outstanding mortgage arrears, they will still be arrears. You will have to reaffirm any autos you're trying to keep and you should speak with your attorney about reaffirming.

Now about your payment. For a payment to go down, there needs to be a change in circumstances. the circumstance of the claim being disputed would not be valid.

Now because you're paying 0 to unsecs, you're locked into this plan for an absolute minimum of 36 months. but if you've satisfied all debts you're required to pay and you've completed your ACP, you're elligible for a discharge at that time. You might not have to be in it 55 months.

Talk with your attorney more about that. It sounds like your plan was going to go 36 months to begin with, so if the IRS claim is not there, then you pay out when you pay out at whatever pace you're going. Only thing to remember is that your ACP is 36 and your BASE is 36 x your monthly payment. That's the minimum that needs to be paid in. If your attorney has your base too high, then there may be more money being paid in than what is necessary, but that's a conversation to have with your attorney.